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Home » EU’s AI adoption lags China amid regulatory hurdles

EU’s AI adoption lags China amid regulatory hurdles

GTBy GTOctober 1, 2025 AI No Comments5 Mins Read
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Google’s President of Global Affairs, Kent Walker, has urged the EU to increase AI adoption through a smarter regulatory approach amid increasing competition, particularly from China.

Speaking at the Competitive Europe Summit in Brussels, Walker positioned AI as a tool that philosophers and economists call an “invention of a method of invention” which will reshape nearly every aspect of modern life and define the future of geopolitical leadership. The Google and Alphabet executive stressed that the stakes are incredibly high for the continent’s future prosperity and security.

While acknowledging European Commission President Ursula von der Leyen’s recent assertion that getting AI right is essential, Walker pointed to a concerning adoption deficit in the EU. He highlighted intense geopolitical competition and how government investment in China is fuelling integration of AI across its economy.

“The strategy is paying off,” Walker stated. “The latest estimates suggest up to 83% of Chinese companies are already using generative AI. Meanwhile, the European Commission estimates that European adoption is hovering at around 14%.”

According to Walker, this AI adoption lag is exacerbated by a regulatory environment that EU companies find increasingly difficult to navigate. He noted that since 2019, over one hundred new EU regulations have targeted the digital economy, leading to a situation where “more than 60% of Europe’s businesses now say regulation is their biggest obstacle to investment in the EU.”

This sentiment is backed by a recent Danish government study which estimated new regulations could impose an additional €124 billion in annual costs on businesses and public administration in Europe. Walker also pointed to the slow progress on implementing Mario Draghi’s recommendations on EU competitiveness, with only 11.2% of his ideas having been adopted a year on. Citing an International Monetary Fund study, he remarked on the fragmentation within the Single Market, where internal barriers create the equivalent of a 45% tariff on goods and a staggering 110% tariff on services.

In response to these challenges, the Google executive proposed a direct, three-part strategy for the EU to reclaim its AI footing: laying a foundation of smart policy, building out adoption through workforce skilling, and scaling up to support widespread innovation.

The foundational step, Walker argued, requires a simplification of the AI regulatory landscape to create a framework supportive of innovation like China, but while ensuring regulation that is focused, aligned, and balanced.

“Regulating in ways that support AI innovation means focusing on the real-world effects of AI,” he explained. This approach involves filling specific regulatory gaps rather than implementing sweeping rules that could stifle beneficial and lower-risk applications. He urged regulators to “oversee outputs, not inputs—to manage risks and consequences, not micromanage science.”

An aligned regulatory framework would apply existing regulations where appropriate and harmonise international standards, allowing providers to offer their best and latest AI models to EU citizens and companies. Walker also emphasised the need to design rules that not only prevent harm but also actively nurture innovation.

Google, he affirmed, remains a committed partner in Europe; with 30,000 employees and large infrastructure investments, including seven data centres and thirteen cloud regions. He noted that the European Commission is currently seeking input to shape this agenda and encouraged businesses to share their views before the 14 October deadline.

The second part of the strategy focuses on building out AI adoption in the EU by equipping people and companies to use these rapidly advancing tools. Walker illustrated the pace of change by revealing that Google’s new AI models are now “300x more efficient than the state-of-the-art from just two years ago.”

To ensure citizens are not left behind, he championed public-private partnerships to accelerate skills training. He mentioned Google’s work over the last decade to help over 14 million Europeans learn digital skills and its €15 million AI Opportunity Fund, which supports vulnerable people in gaining foundational AI knowledge. While companies can initiate AI pilot projects, he stressed that it is the role of governments to scale up the most successful examples, similar to what China is doing for its economy.

Building trust is also central to increasing AI adoption in the EU. Walker explained how Google’s Sovereign Cloud and AI solutions provide EU customers with full control over their data, ensuring it is managed according to local regulatory requirements and European values through partnerships with leaders like Thales in France and Schwarz Group in Germany.

Finally, Walker described the third stage: scaling up. He sought to move the conversation beyond chatbots, which he described as “just a tiny part of its potential,” and towards the scientific breakthroughs AI is enabling.

He provided powerful examples already in motion, such as Google DeepMind’s AlphaFold, which has created a database of nearly every protein known to science, now used by over three million researchers worldwide. This tool is helping scientists at the University of Malta better understand the genetic causes of osteoporosis. Another tool, GNoME, is transforming materials science by discovering hundreds of thousands of new materials with potential applications in energy, transport, and clean water.

Walker concluded with a direct call to action, reiterating that the tools are ready and the potential is clear. “European leaders say AI leadership is at the top of their agenda—and it’s time to make those ambitions a reality,” he urged.

The Google exec finished by stating that this can be achieved by clearing regulatory hurdles for innovators, accelerating research through partnership, and scaling the adoption of AI tools to ignite a new era of EU growth and compete against geopolitical rivals like China.

See also: The value gap from AI investments is widening dangerously fast

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